                                 CODE OF VIRGINIA

DEPOSIT OF MONEY RECEIVED PURSUANT TO PRENEED FUNERAL CONTRACT (§ 54.1-2822)

A. Within 30 days following the receipt of any money paid pursuant to any
preneed funeral contract or interest or income accrued thereon, unless such
amounts are paid to fund either an annuity or an insurance policy which will be
used to purchase the funeral supplies or services contracted for, the person
receiving such amounts shall deposit all consideration paid pursuant to the
terms of a preneed funeral contract in which the price of the supplies and
services is not guaranteed, or ninety percent of all consideration paid pursuant
to the terms of a preneed funeral contract in which the price of the supplies
and services is guaranteed, in a special account in a bank or savings
institution doing business in this Commonwealth.

B. The funds shall be deposited in separate, identifiable trust accounts setting
forth the names of the depositor, the trustee for the person who is the subject
of the contract, the name of the person who will render the funeral services and
the name of the person who is the subject of the contract. The purchaser shall
have the right to change the beneficiary and trustee of the trust at any time
prior to the furnishing of the services or supplies contracted for under the
preneed funeral contract. Trust account records shall be subject to examination
by the Board.

C. No funeral director, embalmer, funeral service licensee, owner of a funeral
establishment, or any person employed by or having an interest in a funeral
establishment shall serve as trustee of a trust account for which any such
person, or any funeral establishment owned by or employing such person or in
which such person has an interest, has been named the beneficiary or designated
the provider of services, unless two or more such persons are named and serve as
trustees and are required to act jointly in such fiduciary capacity. Subject to
the terms of this subsection, and notwithstanding any other provision of law,
the trustee for any such trust account may be an incorporated association that
is authorized to sell burial association group life insurance certificates in
the Commonwealth, as described in the definition of limited burial insurance
authority in &#xA7; 38.2-1800, whose principal purpose is to assist its members
in (i) financial planning for their funerals and burials and (ii) obtaining
insurance for the payment, in whole or in part, for funeral, burial, and related
expenses.

HISTORY: 1989, c. 684; 1992, c. 337; 2007, c. 621.